2009 California Streets and Highways Code - Section 5898.20-5898.32 :: Article 2. Creation Of Contractual Assessment Program ..

5898.20.  (a) (1) The legislative body of any public agency may
determine that it would be convenient and advantageous to designate
an area within the public agency, which may encompass the entire
public agency or a lesser portion, within which authorized public
agency officials and property owners may enter into voluntary
contractual assessments for public improvements and to make financing
arrangements pursuant to this chapter.
   (2) The legislative body of any public agency may also determine
that it would be convenient, advantageous, and in the public interest
to designate an area within the public agency, which may encompass
the entire public agency or a lesser portion, within which authorized
public agency officials and property owners may enter into voluntary
contractual assessments to finance the installation of distributed
generation renewable energy sources or energy or water efficiency
improvements that are permanently fixed to real property pursuant to
this chapter.
   (b) The legislative body shall make these determinations by
adopting a resolution indicating its intention to do so. The
resolution of intention shall include a statement that the public
agency proposes to make voluntary contractual assessment financing
available to property owners, shall identify the kinds of public
works, distributed generation renewable energy sources, or energy or
water efficiency improvements that may be financed, shall describe
the boundaries of the area within which voluntary contractual
assessments may be entered into, and shall briefly describe the
proposed arrangements for financing the program, including a brief
description of criteria for determining the creditworthiness of a
property owner. The resolution of intention shall state that it is in
the public interest to finance the installation of distributed
generation renewable energy sources or energy or water efficiency
improvements, or both, pursuant to paragraph (2) of subdivision (a),
if applicable. The resolution shall state that a public hearing
should be held at which interested persons may object to or inquire
about the proposed program or any of its particulars, and shall state
the time and place of the hearing. The resolution shall direct an
appropriate public agency official to prepare a report pursuant to
Section 5898.22 and to enter into consultations with the county
auditor's office or county controller's office in order to reach
agreement on what additional fees, if any, will be charged to the
city or county for incorporating the proposed voluntary contractual
assessments into the assessments of the general taxes of the city or
county on real property.
   (c) As used in this chapter, each of the following terms shall
have the following meaning:
   (1) "Efficiency improvements" means permanent improvements fixed
to residential, commercial, industrial, agricultural, or other real
property.
   (2) "Legislative body" means the governing body of a public
agency.
   (3) (A) For the purpose of financing the installation of water
efficiency improvements, "public agency" means a city, county, city
and county, municipal utility district, community services district,
sanitary district, sanitation district, or water district, as defined
in Section 20200 of the Water Code. The definition of "city" in
Section 5005 shall not apply to this subparagraph.
   (B) For the purpose of financing the installation of distributed
generation renewable energy sources or energy efficiency
improvements, "public agency" means a county, city, city and county,
or a municipal utility district, an irrigation district, or public
utility district that owns and operates an electric distribution
system. The definition of "city" in Section 5005 shall not apply to
this subparagraph.
   (C) For the purpose of financing the public improvements, "public
agency" means a city as defined in Section 5005.

5898.21.  Notwithstanding any other provision of this chapter, upon
the written consent of an authorized public agency official, the
proposed arrangements for financing the program pertaining to the
installation of distributed generation renewable energy sources or
energy or water efficiency improvements that are permanently fixed to
real property may authorize the property owner to purchase directly
the related equipment and materials for the installation of
distributed generation renewable energy sources or energy or water
efficiency improvements and to contract directly for the installation
of distributed generation renewable energy sources or energy or
water efficiency improvements that are permanently fixed to the
property owner's residential, commercial, industrial, agricultural,
or other real property.

5898.22.  The report shall contain all of the following:
   (a) A map showing the boundaries of the territory within which
voluntary contractual assessments are proposed to be offered.
   (b) A draft contract specifying the terms and conditions that
would be agreed to by a property owner within the voluntary
contractual assessment area and the public agency.
   (c) A statement of public agency policies concerning voluntary
contractual assessments including all of the following:
   (1) Identification of types of facilities, distributed generation
renewable energy sources, or energy or water efficiency improvements
that may be financed through the use of contractual assessments.
   (2) Identification of a public agency official authorized to enter
into voluntary contractual assessments on behalf of the public
agency.
   (3) A maximum aggregate dollar amount of voluntary contractual
assessments.
   (4) A method for setting requests from property owners for
financing through voluntary contractual assessments in priority order
in the event that requests appear likely to exceed the authorization
amount.
   (d) A plan for raising a capital amount required to pay for work
performed pursuant to voluntary contractual assessments. The plan may
include amounts to be advanced by the public agency through funds
available to it from any source. The plan may include the sale of a
bond or bonds or other financing relationship pursuant to Section
5898.28. The plan shall include a statement of or method for
determining the interest rate and time period during which
contracting property owners would pay any assessment. The plan shall
provide for any reserve fund or funds. The plan shall provide for the
apportionment of all or any portion of the costs incidental to
financing, administration, and collection of the voluntary
contractual assessment program among the consenting property owners
and the public agency.
   (e) A report on the results of the consultations with the county
auditor's office or county controller's office concerning the
additional fees, if any, that will be charged to the city or county
for incorporating the proposed voluntary contractual assessments into
the assessments of the general taxes of the city or county on real
property, and a plan for financing the payment of those fees.

5898.24.  (a) A legislative body shall publish notice of a hearing
pursuant to Section 6066 of the Government Code, and the first
publication shall occur not later than 20 days before the date of the
hearing.
   (b) A legislative body shall provide written notice of a proposed
contractual assessment program to all water or electric providers
within the boundaries of the area within which voluntary contractual
assessments may be entered into not less than 60 days prior to
adoption of any resolution pursuant to Section 5898.26.
   (c) (1) A legislative body administering a voluntary contractual
assessment program shall designate an office, department, or bureau
of the local agency that shall be responsible for annually preparing
the current roll of assessment obligations by assessor's parcel
number on property subject to a voluntary contractual assessment.
   (2) The designated office, department, or bureau shall establish
procedures to promptly respond to inquiries concerning current and
future estimated liability for a voluntary contractual assessment.
Neither the designated office, department, or bureau, nor the
legislative body, shall be liable if any estimate of future voluntary
contractual assessment liability is inaccurate, nor for any failure
of any seller to request notice pursuant to this chapter or to
provide the notice to a buyer.
   (d) For purposes of enabling sellers of real property subject to a
voluntary contractual assessment to satisfy the notice requirements
of Section 1102.6b of the Civil Code, the legislative body shall
cause to be recorded in the office of the county recorder for the
county in which the real property is located, concurrently with the
instrument creating the voluntary contractual assessment, a separate
document that meets all of the following requirements:
   (1) The title of the document shall be "Payment of Contractual
Assessment Required" in at least 14-point boldface type.
   (2) The document shall include all of the following information:
   (A) The names of all current owners of the real property subject
to the contractual assessment, and the legal description and the
assessor's parcel number for the affected real property.
   (B) The annual amount of the contractual assessment.
   (C) The date or circumstances under which the contractual
assessment expires, or a statement that the assessment is perpetual.
   (D) The purpose for which the funds from the contractual
assessment will be used.
   (E) The entity to which funds from the contractual assessment will
be paid and specific contact information for that entity.
   (F) The signature of the authorized representative of the
legislative body to which funds from the contractual assessment will
be paid.
   (e) The recorder shall only be responsible for examining the
document required by subdivision (d) and determining that it contains
the information required by subparagraphs (A), (E), and (F) of
paragraph (2) of subdivision (d). The recorder shall index the
document under the names of the persons and entities identified in
subparagraphs (A) and (E) of paragraph (2) of subdivision (d). The
recorder shall not examine any other information contained in the
document required by subdivision (d).

5898.26.  At the time of the hearing, the report shall be summarized
and the legislative body shall afford all persons who are present an
opportunity to comment upon, object to, or present evidence with
regard to the proposed contractual assessment program, the extent of
the area proposed to be included within the program, the terms and
conditions of the draft contract, or the proposed financing
provisions. At the conclusion of the hearing, the legislative body
may adopt a resolution confirming the report or may direct its
modification in any respect, and thereafter may adopt a resolution
confirming the report as modified, or the legislative body may
abandon the proceedings. However, the legislative body may not
increase the area within which contractual assessments would be
offered without providing notice of the proposed increase in area
pursuant to Section 5808.24. The hearing may be continued from time
to time not exceeding a total of 180 days.

5898.28.  A public agency may issue bonds pursuant to this chapter,
the principal and interest for which would be repaid by voluntary
contractual assessments. A public agency may advance its own funds to
finance work to be repaid through voluntary contractual assessments,
and may from time to time sell bonds to reimburse itself for such
advances. A public agency may enter into a relationship with an
underwriter or financial institution that would allow the sequential
issuance of a series of bonds, each bond being issued as the need
arose to finance work to be repaid through voluntary contractual
assessments. The interest rate of each bond may be determined by an
appropriate index, but shall be fixed at the time each bond is
issued. Bond proceeds may be used to establish a reserve fund, and to
pay for expenses incidental to the issuance and sale of the bonds.
Division 10 (commencing with Section 8500) shall apply to any bonds
issued pursuant to this section, insofar as that division is not in
conflict with this chapter.

5898.30.  Assessments levied pursuant to this chapter, and the
interest and any penalties thereon shall constitute a lien against
the lots and parcels of land on which they are made, until they are
paid. Division 10 (commencing with Section 8500), insofar as those
provisions are not in conflict with the provisions of this chapter,
Article 13 (commencing with Section 53930) of, and Article 13.5
(commencing with Section 53938) of, Chapter 4 of Part 1 of Division 2
of Title 5 of the Government Code apply to the imposition and
collection of assessments contracted for pursuant to this chapter,
including, but not limited to, provisions related to lien priority,
the collection of assessments in the same manner and at the same time
as the general taxes of the city or county on real property, and any
penalties and remedies in the event of delinquency and default.

5898.31.  Since contractual assessments on real property under this
chapter are voluntary and imposed pursuant to an agreement with an
assessed property owner, the Legislature finds and declares that
voluntary contractual assessments under this chapter are not
assessments for the purposes of Articles XIII C and XIII D of the
California Constitution and therefore the provisions of Articles XIII
C and XIII D and Article 4.6 (commencing with Section 53750) of
Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code
are not applicable to voluntary contractual assessments levied
pursuant to this chapter.

5898.32.  The legislative body shall direct its clerk to record a
notice of the existence and amount of each contractual assessment
with the county recorder of the county in which the lot or parcel is
located. The county recorder shall accept those filings and may
charge the clerk a fee for recording those documents pursuant to
Section 3116. The failure of the clerk or recorder to perform the
filings shall not subject the local agency or any of its officers or
employees to civil liability.